EURUSD breaks to new session lows as London/European traders exit for the day

Technical Analysis

Author: Greg Michalowski | eurusd

Lower EUR helps the stocks gain today

As the London/European traders exit for the day, the EURUSD is cracking to new session lows. In it's downward wake include a fall below the 100 hour MA at 1.19766 and a lower trend line at 1.1968. The 100 hour MA is now risk for shorts. Stay below is more bearish.

What are the targets?

The 61.8% of the move up from the Sept 5 low comes in at 1.1953. A lower trend line and 200 hour MA come in at 1.1935-37 area.  That combination would be a key support target today if that downward momentum continues. 

The run lower in the EURUSD today has been good news for the stock indices in Europe today. The major indices all had strong gains. Below are the results:

  • German Dax up 1.39%
  • France Cac up 1.24%
  • UK FTSE up 0.49%
  • Spain Ibex up 1.91%
  • Italy FTSE MIB up 1.64%
  • Portugal PSI20 +0.11%
In the 10 year debt market in Europe, yields moved modestly higher:
  • German 0.336%, up 2.4 bp
  • France 0.633%, up 1.7 bp
  • UK 1.045%, up 5.4 bp
  • Spain 1.566%, up 2.3 bp
  • Italy 1.968%, up 1 bp
  • Portugal 2.818%, up 1.8 bp
  • Greece 5.463%, up 0.7 bp